India is constantly making efforts to use renewable energy sources for various purposes. However, a recent analysis showed that India’s solar power goal of 100 GW by 2020—which was achievable—can be hindered by the lack of cheap financing and weak infrastructure.
For India to accomplish its targets, 130.76 GW of renewable energy during the next 6 years must be added, that is, an average of 21.7 GW per year or roughly 3 times the capacity it added in 2016. This target is vital for India in attaining its aim to decrease global warming by the year 2100.
As a part of Intended Nationally Determined Contributions, India has pledged to produce its electricity (40%) from non-fossil fuel sources by 2030.
In 2015, India contributed $10.2 Billion of private and public money in renewable energy, about a quarter of the yearly expenditure needed. In 2016–2017, the government granted $758 Million, that is, Rs 5,035.79 crore for renewable energy.
Equity investors and lenders find it perilous to spend in renewable energy due to suspicion about administrative problems related to government clearances and land acquisition for projects, whether publicly owned energy supply companies will buy the power generated, and questions about the capability to handle the additional energy generated by India’s electricity network.
In addition to above-mentioned factors, the framework for plants such as land acquisition, differentiation of land areas in solar power plants, and development of ingress roads is not complete, even after tenders for projects are completed, which can influence project profitability and costs.
So what do you think about this 2020 renewable energy target? Do you have any additional points that can hinder in achieving this target or any solution to the issues? Feel free to share your thoughts.